Weekly Crypto Analysis October 22-27, 2018

Weekly Crypto Analysis October 22-27, 2018

Bitcoin

Source: tradingview.com

The last week saw a huge surge in volatility, especially on the Bitfinex exchange, where the Bitcoin price surged to 7,700 on October 15th. The upward move is considered to be supported by news from Fidelity Investments who will offer crypto-related services for institutional clients. From a price action perspective, even though the move on the upside faded in the short-term, the push higher still supports a greater move up until the end of the year.

We have spotted an upward trend line confirmed by two points and we should see interest from the bulls around the highlighted area. A breakout below the trend line could signal further weakness and a possible retest of the 6,200 lows.

On the other hand, if bulls will manage to accumulate and drive the price action higher, we expect the key 6,800 level to come under pressure. A breakout and close above on a daily basis will mean that the odds of the Bitcoin price surging higher will be far greater.

Ethereum

Source: tradingview.com

In our last weekly crypto analysis, we have highlighted a range on the 4h chart and driven by the Bitcoin surge, the price broke on the upside. However, as volatility dropped and prices retraced lower, a retest of the broken range followed, and buyers stepped in again. Breakout and retest formations usually suggest that the order flow behind the price action had changed, so we expect the price of Ethereum to gradually extend on the upside.

In the short to medium term horizon, we suspect it will put pressure again on the 234-239 key resistance area, thus confirming our forecast of a bottoming formation.

If the price will break lower, into the range, that will be a sign of weakness and will negate our view.

Ripple

Source: tradingview.com

For the entire October, Ripple had been consolidating higher, following a strong surge back in September. However, we see buyers had emerged around 0.37 US dollars/ piece and fueled by the last week rise in the market, the price had broken above the 0.43-0.45 key area and now is expected to test a falling trend line confirmed by two points. We are in a triangle-type formation, so the direction of the breakout is expected to show the future direction of price.

An upward break could mean that the Ripple price will continue on its way up towards the 0.62 area, where the sellers had resumed on September 30th.

A break on the downside, however, will suggest some further weakness in the Ripple price might follow, opening the door for a new retest of the 0.37 area, where the current leg up had started. We think the upside is more favored, given the current extremely oversold conditions.

Briefings about ICOs

According to icoalert.com, Sylo is an ICO project that is currently active, and it will run for another 58 days. It represents a decentralized communication network and ecosystem, a video, voice, and messaging protocol.

In terms of upcoming ICOs, Coinbates will start its fundraising campaign on November 1st. It is a project that aims to open crypto to everyone with crypto cashback shopping.